Happy Monday!

It’s reading week, and the last thing I want to do is make you read any more than you have to. However, we have tons of new stuff today and are excited to be off for the week. We’re going to have a bit of a special episode today, and you’ll be able to get the reading out the way for the day. Today, we will cover some generic market news, get a start on our MF, and peek into a new section.

In this week’s rundown:

• Lyfting Prices: Basis point shmasis point. Warren Buffet thinks EBITDA is stupid anyway; who cares what we report?

• Mutual Fund: Will we make money?

• Interview Prep: Brain teasers, but your livelihood depends on them!

• Real Estate: Finance Real Estate Dual Major?

• Social Ledger: Josh is on deck. What’s he got?

Career Compass

Market Changes

Hello and welcome to Dividends and Downtimes spring break edition. I’m typically only slightly late writing my segment of the letter, but this week, I’m so behind that Xander may execute me the next time he sees me. Here’s the latest. 

Lyft Mistake: Lyft recently released their Q4 earnings report and reported their margin expansion to be 10x higher than actuality, causing their stock to soar more than 60%. What essentially doubled their market valuation to 2.5x was later tossed away when their CFO went on an earnings call and reported their mistake. I guess I’m not the only one becoming an intern, LOL. 

In addition, Lyft and Uber were involved in a scandal where drivers complained about receiving no tips during deliveries. Because of this, there was a staged Valentine's Day driver strike and numerous reports of drivers complaining about the significant decrease in income over the past few months. 

Shake Shack is up: Another extremely interesting Q4 earnings report was Shake Shack’s, which reported a new 52-week high price and an annual stock growth of over 67%. Their leadership team also prioritized margin expansion and restaurant growth in the coming year. Great news for us in Van: Shake Shack soon???

Air Canada Rogue Chatbot Loses: A man, Jake, booked a flight using Air Canada’s chatbot and was instructed to book a last-minute flight and request a refund within 90 days. Unfortunately, Air Canada denied his refund request, forcing him to take it to a civil trial and eventually win. Air Canada was ordered to compensate him, and the Chatbot was removed. For now, I guess we can still win. 

New York +$354 Million: Donald Trump is ordered to pay 354 Million from the State for fraudulent business tactics. This is while evidence comes from Trump inflating his wealth by large quantities of almost 3.6 Billion. This is the Finance section, but this massive net worth fraud makes it D&D-worthy. As he appeals this case, he is also defending himself against RICO charges, DOJ Elections cases, NY Felony scandals, and much more. Let’s see what the total bill racks up to. 

MF’n DND

Money Moves

Last week, we announced our new mutual fund and how excited we are to hopefully make one hundred bajillion dollars. We didn’t give you all our picks last week, but I’ll offer you a quick summary of what we’re looking into this week.

I AM NOT QUALIFIED NOR COMPETENT ENOUGH TO BE GIVING OUT FINANCIAL ADVICE. THIS IS SIMPLY A PERSONAL LEDGER OF THE TRADES I MAKE AND THE REASONING BEHIND THEM. PLEASE DO NOT STAKE YOUR LIFE SAVINGS ON ME.

Our Picks for Last Week

We went with three different picks last week. As we’re just getting started, many of our picks in the upcoming month will be centred around safe, long-term bets. The following are our three picks.

VOO: 0.022 Shares @ $453.82

NVDA: 0.01 Shares @ $726.2898

FICO: 0.008 Shares @ $1,270.4088

But… why?

VOO and NVDA should speak for themselves. However, FICO may seem like an odd pick. Here’s my reasoning behind it. FICO has a fantastic track record, demonstrating an 80.46% win rate on its buy signals since January 2017. FICO has shown consistent returns when signals have indicated good times, with an average performance increase of +11.22% three months post-signal.

In addition to market predictions, the company has a fantastic return on assets (ROA) of 29.67%. This absurd level of ROA is not just a testament to FICO's ability to generate earnings from its assets but also underscores its competitive advantage compared to comparable firms. Stocks with a similar ROA to FICO have historically underperformed the market, which is another reason I like FICO. I plan to hold this for ~ 3 months and am looking (praying) for that 11% return.

AGAIN - THIS IS **NOT** FINANCIAL ADVICE

Upcoming Week

Updates on Last Week

Most of these trades were made throughout last week, and I have not found a solid way to track this moving forward. It’s tough to make my entire pick list for a week before the week begins, but I want you guys to see our choices without waiting a week. However, that may just not be feasible, and you may have to be a laggard (again, this is not financial advice anyway, so it shouldn’t matter when you see it). I’m just thinking out loud, but I do like you guys to know what’s going on and why I make the decisions I do. For this week, I’ll update you on choices I made last week and choices I could be looking at this upcoming week.

Prices as of February 19, 2:37 AM

Changes will be based on DCA moving into the future.

VOO: $453.82 → $459.03 (+1.14%)

NVDA: $726.2898 → $726.13 (-0.022%)

FICO: $1,270.4088 → $1,282 (+0.912)

Overall, the week wasn’t horrible. I’m not too stressed about VOO or NVDA, as they’re both long-term holds, but I’m hopeful for FICO and look forward to what the future holds.

My Picks for This Week

I have not done an adequate amount of research this week. However, here’s a list of 5 stocks I will be keeping my eye on for this week:

• ORLY

• NVDA

• FICO (Again)

• ADBE

• NOW

Academic Alley

It’s Reading Week

Chill out. Go for a walk. Go to the gym. No matter how much studying you want to do this week (knowing my audience, probably very little), please take some time yourself. Drink water, and I will see you with some more self-betterment next week.

Interview Question

Sak and I both dream of one day spending 100 hours a week staring at Microsoft Excel. However, thousands of other people also want to do this for some reason, and it’s tough to get into. One of the most challenging barriers to this is “wildcard” questions given in interviews, which often involve a lot of critical thinking, which I hate as much as the next guy. To help us all, I figured I’d add a question or two each week to keep everyone on their toes. Can’t figure it out? Check our Instagram later this week for the answer.

Too Many Balls

You are given 100 balls: 50 red, and 50 black. In addition to the balls, you are also given two opaque vases, such that someone would not be able to see into the vase. You will place all 100 balls into the two vases, splitting them up between them however you choose. After you’ve organized the balls, I randomly select one of the two vases and pick a random ball out of the vase.

How should you split the balls between the vases to maximize my odds of choosing a red ball?

STUDENT LIFE

Real Estate Run-Down

At long last, we're blessed with a much-needed reading break (jk, none of my midterms have started yet). This week, I will take a break from educational yapping and move on to academic/career advice. If you're still on the fence about your specialization, or you're wondering what two majors to combine, read along (or close the email)

Why Finance and Real Estate Works:

Alright, I know what you're thinking: "What the hell does this guy know? He's only a second year and knows nothing about finance OR real estate!"...and you're right! When you hear "finance", I'm sure a mental image immediately springs into your head. I'm that guy (I like money). But instead of investing in start-ups like "Joe's Ice Cream Parlour" or lucrative hedge funds, why not invest in a more...tangible asset? By double specializing, you not only focus your expertise but also get that added advantage over your general "finance bros." There's a limited supply of real estate, and getting into the market fast will easily set you up in the future if the world makes it that far. So what are you waiting for? For the additional cost of only six more courses, which can count as your Commerce electives, you get a beautiful "...and Real Estate" on your degree!

Joey’s Pick of The Week

• 2 Bed

• 1 Bath

• $3250/month

• 900 sqft

An astounding 20 minutes away, this spacious two-bedroom-one-bath basement suite is your perfect solution to housing next year. With utilities included, the lease offers a full kitchen, both in-suite washer and dryer, and a large living room that fits a dining table + sofa. I'm not going to lie; this is one of the best I've found. The entire suite looks refurbished and clean, with huge bedrooms and pretty much all you need.

Social Ledger: New Updates…

As we get further into D&D, and I realize how many outstanding, capable, driven individuals I have around me, I think, “Why am I doing so much work? I should be taking advantage of everyone I can”. In that spirit, I am excited to introduce this week’s Social Ledger head - Big Man Josh Himself. We’ve expanded this section to cover more and hope to build the social ledger around student life and Vancouver living.

Ladies and Gentleman, Josh Wright.

Social Ledger: Get Sipping

The reading break effect is in full swing this week...and chances are most of your plans don’t involve much reading. Get your fix of packed, sweaty dance floors and $18 drinks that we know you’ve been missing dearly this week at Celebrities Nightclub. Everyone and their Mothers may be familiar with a classic Celebs Tuesday, but indulging in this Davie Street gem over a reading break is another story that will test your nightlife limits: more sweat, more headbanging, more damage to the bank account. See you there.

TLDR:

• Who? → UBC Students, EDM addicts, That group of people you forgot existed from high school, 60-year-old hedge fund managers, your controversial uncle...you get the point.

• What? → Celebs Tuesday...Reading Week Style

• When? → Tuesday, February 20

• Where? → Celebrities Nightclub

• Why? → It’s times like these when you realize sometimes it’s unhealthy to live in a state of such denial. You’re not studying Wednesday morning nor getting your sleep schedule on track.

• How? (much) → … (TBD)

Social Ledger: Non-Sipping

If the midterm season has left you questioning your ability to enjoy anything in life ever again, or if you seem to have forgotten how to laugh through the countless all-nighters, look no further than Just For Laughs Vancouver. Until February 24, you can catch an all-star lineup of stand-up comedians, including Ben Schwartz, Bill Burr, and Ronny Chieng, at several Vancouver hotspots, including Rogers Arena, The Biltmore Cabaret, Vogue Theatre, China Cloud, and more. If your life has been missing a solid laugh, look no further to get your fix of ab cramps for the week.

TLDR:

• Who? → Some of the legends of our generation’s stand-up comedy scene

• What? → Just for Laughs, Vancouver

• When? → February 15-24

• Where? → Varies based on show; see Link for more information

• Why? → We’re pretty funny but haven’t started doing live shows yet.

• How? (much) → Varies based on show; see Link for more information

Social Ledger: Academic

Are you seriously wasting your time looking here? During reading week? Pack it up, nerds; you can wait a week.

Social Ledger: Good Eats

Bin 4 Burger Lounge

It was recently my Mom’s birthday, and after countless hours of thorough research on some of Vancouver’s finest cuisine options, I found myself coming up short. I mean, what could suffice for the woman who birthed yours truly? Alas, as a good son would, I remembered that my Mom is somewhat of a burger enthusiast, which led me lovingly into the hands of Bin 4 Burger Lounge on South Granville. Their burger options were almost overwhelming, each creation sounding more flavourful and creative than the last. I mean, these culinary endeavours would leave Gordon Ramsey looking like a college dorm kid making instant ramen. The meal started with a round of life-changing Goat Cheese Bruschetta (see image below), with the big ball thing you notice is a melty, mouth-watering love capsule of goat cheese, whose rich creaminess perfectly complemented the tang of the balsamic glaze. The bruschetta base was juicy and refreshing on the palate, and the parmesan garnish brought everything together into an unforgettable explosion of delight served on the crisp, lightly garlic-ed slices of crostini. However delightful this appetizer was, nothing, and I mean NOTHING, could have prepared me for the masterpiece affectionately referred to as the “Bin 17 – Black & Blue.” Now, this burger was not only ridiculously juicy, but the “blackening spice” used here left a smoky aftertaste perfectly complemented by the sharpness of the blue cheese. The crispy onions, lettuce, and tomato gave the mouth feel that tied together this offering. At the same time, the chipotle aioli played a subtle yet significant role in bringing out the best of each flavour in this burger.

My mouth is watering just thinking about it. Believe it or not, it gets better. Besides the apparent side of fries (seasoned phenomenally), each burger offering comes with a complementary Aioli of your choosing, ranging from bacon, roasted jalapeno, and sriracha cilantro. You get the point. Boujee. My only criticism of this restaurant was that the girth of the patty was slightly underwhelming when ordered as is off the menu. Thankfully, there is an easy fix. Next time, I would gladly splurge the extra $2 for the 1⁄2 lb patty. I’d probably splurge on a whole other burger. Wow.

Josh’s Official Rating: 4.5/5 Big Man Ting’s

TLDR:

Who? → You and your mom on her birthday, or your friends, or even solo so you get can real messy with your burger without the watchful eyes from across the table.

What? → The best f***kin burger you’ve ever had. Ever.

When? →

11:00 AM – 10:00 PM Sunday – Thursday

11:00 AM – 11:00 PM Friday - Saturday.

Get those hungover brunch cravings OR late-night munchies.

Where? → 2996 Granville St

Why? → You will see exactly why. Trust me.

How? (much) → $20 - $35/person (a little pricey, but you have my solid D&D word that it’s worth it)

WRAPPING UP

Andddddd - we are done!

We’ve got big changes and big moves going on. We hope you all enjoy your week off, and hope we all have a chance to recharge.

Please send your hate mail below.

[email protected]